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Newcomers, build your credit history

Owning a home or a car, opening a business, taking out a loan and renting a home all have one thing in common – they require a credit score.

Your credit score is a number that reflects your ability and capacity to borrow money while repaying back to the lender accordingly. Your credit score is a key indicator these and other institutions use to determine whether you qualify for borrowing credit.

It is important to acquire a Canadian credit history as you settle into your new home. Here are a few ways you can start building your credit:

Open your first Canadian bank account and start building credit history right away. Go into a bank branch and speak with an advisor about which bank account is best for you; there is no commitment or cost to having this conversation. One way to establish your credit history and build a good credit score is by obtaining a small line of credit or credit card, using it wisely and making regular payments. 

A credit card may be needed for certain purchases, such as setting up a contract for a mobile phone, setting up household utilities, renting a car or shopping online and offers a convenient way to shop and pay for services without carrying large amounts of cash. Try to pay the full balance on your credit card on time, and make sure to at least pay the minimum balance. You’ll save on interest charges and still help build your credit history.

More ideas on how to save more at rbc.com/newcomers.

– News Canada 

Posted: May 1, 2019

July 2019

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